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Oil prices drop amid rising U.S. stocks, OPEC uncertainty

2018-11-29 09:49

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Oil prices dipped on Wednesday, as the U.S. Energy Information Administration (EIA) recorded a continuous rise in U.S. crude inventories, exceeding market expectations.

U.S. crude stockpiles went through a 10th straight week of increase, up 3.6 million barrels in the week ending on Nov. 23, piling concerns over supply surplus and sagging demand growth, according to a weekly EIA report released on Wednesday.

Investors remain uncertain over whether an agreement on output cut would take shape during next week's OPEC meeting in Vienna, as Saudi Energy Minister Khalid al-Falih said on Wednesday his country would not cut oil output on its own.

Saudi Arabia "will not do it alone," said Falih, according to Reuters, since the oil cartel and its allies have anticipated to "reach a decision that brings stability back to the market."

Analysts said Falih's remarks signaled that the kingdom seeks to reduce global supply in face of pressure from U.S. President Donald Trump, who has repeatedly called on the kingdom to continue bringing down oil prices.

The West Texas Intermediate for January delivery fell 1.27 U.S. dollars to settle at 50.29 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery fell 1.72 dollars to close at 58.76 dollars a barrel on the London ICE Futures Exchange.
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